1. Gold Price Trends and Influencing Factors

Gold prices are currently experiencing a rally, largely driven by geopolitical risks, expectations of lower US interest rates, and consistent demand from global central banks. In 2025, gold surged by 64%, and experts anticipate prices to range between US$4,800 and US$6,000 per ounce in 2026. The yellow metal is increasingly viewed as a strategic allocation and hedge against geopolitical stress, policy uncertainty, and stagflation risk.

Geopolitical developments, such as the situation in Venezuela and broader policy unpredictability, contribute to gold's safe-haven appeal. Additionally, a directionally easier monetary policy from the Federal Reserve, with expectations of rate cuts, reduces the opportunity cost of holding gold. HSBC projected gold prices could reach $5,000 per ounce in the first half of 2026 due to these factors.

2. Silver Price Trends and Influencing Factors

Silver has shown even more pronounced appreciation than gold, with a 146% appreciation in 2025. Australian silver shares recently jumped following a week where the price of silver increased by over 13%.

Key drivers for silver include:

Persistent supply deficit.

Strong industrial demand, particularly from the solar industry, electrification, power grid upgrades, and automotive components (hybrid and battery electric vehicles).

Renewed investment flows as a cheaper alternative to gold.

Macroeconomic factors similar to gold, such as a softer US dollar, Federal Reserve rate cuts, and renewed appetite for safe-haven assets amid geopolitical concerns.

Historically, silver tends to outperform gold during easing cycles and benefits from lower real yields, which boost both investor allocation and industrial activity. However, silver can also experience significant price volatility.

3. Oil Price Trends and Influencing Factors

Oil prices have edged higher recently due to geopolitical risks, such as escalating protests in Iran which raise concerns about supply disruptions from the OPEC producer. The potential for a wider Iran conflict could impact oil shipments at the Strait of Hormuz, a critical chokepoint for global oil supplies.

Conversely, efforts to resume oil exports from Venezuela and expectations of an oversupplied market in 2026 are limiting gains. The market is currently underestimating the geopolitical risk from Iran, suggesting prices might not fully reflect potential disruptions. WTI crude futures were up 1.47% over the past week.

Summary

Both gold and silver are benefiting from heightened geopolitical risks, expectations of interest rate cuts by the Federal Reserve, and a general move towards safe-haven assets and diversification away from a U.S.-centric financial system. Oil prices are also influenced by geopolitical tensions, particularly in the Middle East, though potential supply increases from other regions and an expected market oversupply are creating counter-pressures.